Bottom-up EV trend: BYD launches budget model for under $11,000

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• EV adoption in North America and Europe follows the top-down cycle
• In China, EVs are launched simultaneously at the top and bottom end of the market
• New BYD Seagull model to cost less than 11,000 US dollars

EV market: top-down cycle

The introduction of electric vehicles has gone from top to bottom in terms of price over the past few decades, as Bloomberg explains. Car manufacturers initially started offering battery powered models at the higher end of the market and are slowly moving towards more affordable price points. This development can also be observed, for example, at the US company Tesla. For example, the EV maker’s first model, the Roadster, cost over $100,000. However, the company’s two high-volume vehicles, the Model 3 and Model Y, are priced in the low-to-mid $40,000 range. This approach also has good reasons, as Bloomberg explains. Premium segments tend to have higher profit margins, and EV batteries have historically been expensive. As with many consumer products, a similar cycle of adoption (top-down) has evolved over the years. However, it can be observed that the market dynamics are slowly changing as the underlying battery technology continues to improve.

China: prime example of change

While EV adoption in North America and Europe continues to follow the top-down cycle, there are signs of change elsewhere. According to Bloomberg, China is a prime example of change. In the past, the introduction of electric cars in the Middle Kingdom took place simultaneously at the upper and lower end of the market. The smallest cars quickly went electric in China because of their attractive prices and a city-level policy that encouraged purchases of plug-in vehicles. The Wuling Hongguang Mini EV, for example, starts at around $5,000. Sales in this segment are now fully electric. Also, by 2022, nearly a third of passenger cars sold were rechargeable, as reported by InsideEVs. A record 5.92 million new plug-in electric cars were registered in China last year, a full 83 percent more than in 2021.

In an increasingly bottom-up world, EV adoption will also catch on in emerging economies like India, Indonesia and Thailand, where governments may not be able to provide generous subsidies, Bloomberg said. And even if it is still too early for an assessment, this already seems to be the case. In Thailand, automakers sold just about 9,600 battery electric vehicles last year. In the first quarter of this year alone, deliveries rose to 14,700. Overall, the numbers are still modest, but rapid growth can also be seen in India and Indonesia.

BYD can accelerate the bottom-up EV trend

Now, with the launch of BYD’s new Seagull model last month, it’s clear that EV momentum will continue at both the low and high end of the global vehicle market. The new Seagull model is said to have a range of up to 405 kilometers, have a quick charge function and have a starting price of less than 11,000 US dollars. The vehicle is powered by a 55 kW motor, which enables a top speed of 130 kilometers per hour, according to InsideEVs. In addition, two different batteries are offered, which are manufactured by BYD itself. The 30 kWh battery allows a range of 305 kilometers, the second option is a 38 kWh battery for 405 kilometers. The batteries should also be able to be brought back to 80 percent within just 30 minutes. A Chinese analyst quoted by Reuters said he expects the Seagull to become the best-selling car in China within six months of launch, according to InsideEVs. He also expects that the car will also convince overseas customers, because an affordable car is also attractive in the United States or Europe.

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